Leaders of the Massachusetts House of Representatives introduce bill to stimulate the economy

BOSTON -- Leaders in the state House of Representatives on Monday unveiled a bill to create jobs and improve the economy by providing about $12.5 million in state matching money for research and development at the University of Massachusetts.

The bill also calls for a policy to use future casino revenues for manufacturing grants and workforce training and spending $2 million for venture capital and grants to help technology startups.

Massachusetts House Speaker Robert DeLeo, left in the foreground, and Rep. Joseph Wagner, right, face reporters in a hallway at the Statehouse in November to discuss casinos.

Supporters said the bill sends a strong message that the state is serious about boosting the economy and helping businesses.

"This legislation sets the tone for the business community and those who create jobs to do just that -- create more jobs," said Paul Guzzi , president and CEO of the Greater Boston Chamber of Commerce, at a Statehouse press conference to release the bill.

The bill comes amid possible signs that the state's economy could use a spark. State tax collections for this fiscal year are up 2 percent over last year but are $180 million below projections through April. The state has only added a net 30,000 jobs over the past 13 months.

On the other hand, the state's economy is stronger than much of the rest of the country. The state's unemployment rate, for example, is 6.5 percent, well below the national rate of 8.2 percent. A credit rating agency last fall raised the Massachusetts rating a notch, citing improvements in how officials manage the state debt, finances and budget and helping it achieve its highest overall rating ever.

Wagner, who is co-chairman of the Joint Committee on Economic Development and Emerging Technologies, and Deleo said the bill contains $2 million in new spending for this fiscal year. The bill also includes authorization for new bonds or increases in existing state bond programs.

Wagner said the bill includes $25 million in new borrowing authorization for research and development grants for universities and institutions that need a state match to go along with federal and possibly private dollars. Wagner said half of the $25 million will go to the five-campus University of Massachusetts. The $25 million would be added to $25 million approved in a 2008 bond law.

"We're pretty excited," Wagner said of the bill.

Michael F. Malone, a vice chancellor for research and engagement at the University of Massachusetts at Amherst, said it's terrific to see more bond capacity for research grants. Federal grants are increasingly requiring a state match, and competition is intense from other states such as New York, Ohio and Texas, Malone said.

In 2006, an initial state match of $2 million enabled the Amherst campus to win a $16 million grant from the National Science Foundation, an independent federal agency, to establish the state's second national center in nano-manufacturing.

The $2 million in new spending in the bill includes $1 million in grants to create a "talent pipeline program" by matching stipends used by private startup technology and innovation companies to hire interns. The money will help retain young skilled workers in areas such as software and other technology fields, legislators said.

Because money is tight in state government, the bill attempts to be creative, Wagner said.

For example, if there is certain amount of a surplus in the state budget for the fiscal year ending June 30, the bill would send $10 million of that surplus to a workforce training and education fund administered by a quasi-development corporation for the state Executive Office of Labor and Workforce Development. The fund has been popular and needs an injection of more money, legislators said.

The bill also includes language to use a portion of future licensing fees from casinos to create a grant program for small to mid-sized manufacturers that need workforce training or technical assistance.

The bill also seeks to extend state and local development permits that are set to expire this year. Under the bill, permits would be extended to 2014, giving new life to developments that may have been struggling for financing.

In another permitting change, the bill would allow residential projects to qualify in a local option program that provides expedited permitting for designated parcels. Right now, only commercial and mixed-use projects can be included in the program.

The bill also aims to expand projects eligible for state bonds under an effort called the Innovative Infrastructure Investment program. The bill increases the maximum bonding capacity for the program to $400 million, up from the current $250 million.

In order to receive a loan under the program, a developer must show that a project will generate enough property and other taxes to pay for the annual state debt payments. In a change, a developer would be allowed for the first time to count "construction related activities" toward those taxes including income taxes from construction workers.

The bill also expands eligibility for the program by allowing parking garages to receive financing.

In order to become law, the bill needs approval of the state House of Representatives, the Senate and the governor.

Active Discussions

Most Read

Breaking News newsletter

When the big stories break, we'll send you an alert.

Leave this field blank

optionalCheck here if you do not want to receive additional email offers and information.See our privacy policy

Thank you

You are now signed up for our Breaking News newsletter. You will receive occasional emails from us as stories break. To view and subscribe to any of our other newsletters, please click here.